Impact of COVID-19 effective reproductive rate on cryptocurrency

【Author】 Minutolo, Marcel C.; Kristjanpoller, Werner; Dheeriya, Prakash

【Source】FINANCIAL INNOVATION

【影响因子】6.793

【Abstract】The importance of cryptocurrency to the global economy is increasing steadily, which is evidenced by a total market capitalization of over $2.18T as of December 17, 2021, according to coinmarketcap.com (Coin, 2021). Cryptocurrencies are too confusing for laymen and require more investigation. In this study, we analyze the impact that the effective reproductive rate, an epidemiological indicator of the spread of COVID-19, has on both the price and trading volume of eight of the largest digital currencies-Bitcoin, Ethereum, Tether, Ripple, Litecoin, Bitcoin Cash, Cardano, and Binance. We hypothesize that as the rate of spread decreases, the trading price of the digital currency increases. Using Generalized Autoregressive Conditional Heteroskedasticity models, we find that the impact of the spread of COVID-19 on the price and trading volume of cryptocurrencies varies by currency and region. These findings offer novel insight into the cryptocurrency market and the impact that the viral spread of COVID-19 has on the value of the major cryptocurrencies.

【Keywords】COVID-19; Cryptocurrency; Bitcoin; GARCH; Digital currency; Fintech

【发表时间】2022 MAY 16

【收录时间】2022-05-25

【文献类型】实证性文章

【主题类别】

区块链治理-市场治理-数字货币